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Ideas for starting out a customer loyalty program for your business
Posted: Sep 12, 2011
Author: WordJack Media
A marketing firm will tell you that one of the most effective strategies for generating income for a business is to create a customer loyalty/rewards program, even during a recession. According to this article (http://www.colloquy.com/article_view.asp?xd=6179), American consumer participation in loyalty programs is on the increase in all demographic sectors. Consumers see these programs as a way of stretching their budgets by receiving loyalty rewards.
Here are three tried and tested methods:
- Whether you sell a product or a service, offer a money-back program to regular clients. Before you throw your hands up in horror, consider the strategy behind this. You know that loyal customers have chosen you over your competitors; therefore you can increase your volume of sales without marketing or advertising. This is a loyalty initiative that really does work. Effectively, it costs you nothing and you have raised the odds of your existing clients buying more.
- If you run a restaurant, offer a loyalty program that offers a free meal for one person in a party of 6 or more patrons.
- Another effective concept is to say to a good client, “If you recommend me to 5 of your friends, I’ll give you x.”
In order for any loyalty program to work effectively, you have to provide a superior customer experience. A program will not work if customer service, the product, or the service is sub-standard. If a client’s experience is not good, there’s nothing in the world that will keep him or her coming back. As such, a rewards/loyalty program starts with customer service.
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